Commitments and Contingencies

12 Months Ended

Dec. 31, 2011

Notes to Financial Statements

Commitments and Contingencies

13. Commitments and Contingencies

Royalty Commitment

In 2002, the Company entered into a technology license related to its development of digital products. Under this agreement, the Company is obligated to pay a royalty for each product sold that utilizes the technology covered by this agreement. The Company paid $77, $98 and $91 for the years ended December 31, 2011, 2010 and 2009, respectively. The agreement has an indefinite term, and can be terminated by either party under certain conditions.

Purchase Commitments

The Company has purchase commitments for inventory totaling $2,701 as of December 31, 2011.

Self Insured Health Benefits

The Company maintains a self-insured health benefit plan for its employees. This plan is administered by a third party. As of December 31, 2011, the plan had a stop loss provision insuring losses beyond $70 per employee per year and an aggregate stop loss of $1,374. As of December 31, 2011, the Company recorded an accrual for estimated claims in the amount of approximately $144 in the accrued liabilities in the Company’s consolidated balance sheet. This amount represents the Company’s estimate of incurred but not reported claims as of December 31, 2011.

Liability for Product Warranties

Changes in the Company’s liability for its standard two year product warranties during the years ended December 31, 2011, 2010 and 2009 are as follows:

	Balance at Beginning of Year		Warranties Issued		Warranties Settled			Balance at End of Year
2011	$	266		247		(266	)	$	247
2010	$	228		263		(225	)	$	266
2009	$	302		228		(302	)	$	228

Legal Proceedings

From time to time the Company may be involved in various claims and legal actions arising in the ordinary course of its business. There were no pending material claims or legal matters as of December 31, 2011.